DAVOS: The sun shone brightly in the Alps during the weekend, partly melting the snow on the peaks, reflecting the mood of the 3,000-odd delegates departing from Davos.

After four days of intense deliberations, frenetic networking, and energetic partying, there was optimism about the prospects of global economic recovery, but business and political leaders warned against complacency.

The feeling that the European crisis had receded and relief that the US has not fallen off the fiscal cliff fuelled positive sentiment.

"The optimism for recovery is there. The feeling is that the worst is behind us. But the mood bordered on complacency. On Wednesday, people talked about how the tail risk had been reduced. By Friday, the last risk was removed," said Alex Weber, UBS chairman, and a co-chair of this year's WEF meeting.

Harish Manwani, HUL chairman and Unilever COO, said the cautious optimism at Davos appeared to be more based on "relief " than fundamental change. The shortterm economic and consumption outlook will continue to be volatile and uncertain. "Uncertainty is the new normal," he said.

The IMF has projected a 3.5% GDP growth for the world economy in 2013, but the Fund's managing director Christine Lagarde described the recovery as fragile and timid because the Eurozone was prone to political crisis and slow decision-making.

She described 2013 as a make or break year for the global economy, and urged governments to maintain the reform momentum in their countries. High unemployment rates and the dilemma of jobless growth continued to be a source of concern at Davos.

"Jobs are the main issue. Unemployment is a huge issue for everyone," said Frederico Curado, president and chief executive of Brazilian aircraft maker Embraer. Coca-Cola chairman Muhtar Kent said the world was searching for sustainable growth and job creation.

"How do you engage the youth who are facing record levels of unemployment?" asked Kent. The future of Europe was another major talking point. British Prime Minister David Cameron, who came to Davos a day after announcing that he would hold a referendum about England's future in the European Union, said Europe needed more political will, not more political institutions.